Swine Flu Pandemic and Real Estate!

Recently there has been a huge out break of Swine Flu in Mexico and there are now several cases that have spread to the United States.  Amazing that this gets so much air play on TV, Radion and the Internet.  What about the Real Estate Dope Flu?  Yes, the Real Estate Dope Flu has been spreading rapidly thru the US for the past 5 years.

Before I address the Real Estate Dope Flu, I need to announce three great new properties available in the Northwood Pointe neighborhood, but are NOT on the MLS.  If you know of anyone looking, let me know immediately:

 1. In RoseGate we have a 7 bedroom, 6.5 bath home with 5,500 square feet for $1,899,000 and ready to move in July 1, 2009.  It has amazing upgrades and an incredible floor plan.  It is gated with private access to the hiking trail and just 200 yards to award winning elementary and high schools as well as swimming, baseketball and open fields.

2. In Arbor Crest we have a Plan 4 with around 4,300 square feet with 5 bedrooms plus an office and retreat, 4.5 bathrooms for $1,599,000.  This has a guest suite downstiars and an office and a three car side by side garage.  Great upgardes of wood floors, granite counters, buitl in speaker system and a wonderful spa in the yard with a BBQ and potential Koi pond. 

3. In  Taylor Woodrows Mahogany, a beautifully upgraded home with fantastic souther sun exposure, almost 3,500 square feet with 5 bdrooms, 4.5 bathrooms - wood floors, granite counters and an amzing master suite with retreat and gymnasium.  Offered at $1,599,000.

Now back to the Real Estate Dope Flu.  This flu is so incidius that once it attackes your ego system, it will not let go until it depletes all of your equity.  Early symptoms are changes in attitude to more arrogant, large consumer item expenditures, and relying on home equity instead of career earnings. 

Treat your real estate like  a CD that makes 10%, LEAVE IT ALONE!   Do not rely on the equity to pay your bills, rely on YOU to pay the bills.

For more information, go to www.MichaelDunn.com or call 949-533-2581.

Mike

Posted: April 26th, 2009 under Hot Tips, Real Estate News.
Comments: none

Miss USA 2009 - North Carolina and Real Estate!

I know I am reaching here when I mention Miss USA 2009, former Miss North Carolina and put the two together for real estate.  However, there is a connection.  You see I own a rental property in North Caroilina.  You like how I tied this into real estate?

Well, let’s look at North Carolina:

The Research Triangle, commonly referred to as “The Triangle”, is a region in the Piedmont of North Carolina in the United States, anchored by the cities of Raleigh, Durham, and Chapel Hill. The eight-county region, officially named the Raleigh-Durham-Cary CSA, comprises two Metropolitan and one Micropolitan Statistical Area: Raleigh-Cary and Durham-Chapel Hill metropolitan area. The region’s population was 1,314,589 at the 2000 census.^[1] The research universities of the University of North Carolina at Chapel Hill, North Carolina State University, and Duke University are located in this region. The “Triangle” name was cemented in the public consciousness in the 1950s with the creation of Research Triangle Park, home to numerous high-tech companies and enterprises. Although the name is now used to refer to the geographic region, “The Triangle” originally referred to the universities, whose research facilities, and the educated workforce they provide, have historically served as a major attraction for businesses located in the region. The region should not be confused with “The Triad”, which is the region directly west of the Triangle. Most of the Triangle is represented by, and closely associated with, the second, fourth and thirteenth congressional districts.

My rental property is a 4 bedrooms, 2.5 baths, 2,400 square feet home in Charlotte which produces $1,050 per month in rent with a mortgage of $541 per month.  The tax rate is ONLY .62% . . . yes .62%!   I bought the house for $143,000.

This is not the sexy flipping property we are used to in SoCal, but it is a rock solid and steady cash flow.  Remember, real estate should be treated like a long term investment.  If you are under 60 and in good health, you do not need the money now - so invest it wisely and just wait.

By the way, I do NOT pay $541 per month on my mortgage, I send in the RENT AMOUNT - $1,050 for my mortgage payment.  This pays down the principal faster and gives me piece of mind.  You can always pay the minimum, but you wnat to use your advantage, the tennat, to help you get your home paid off sooner.

If you are interested in more details, feel free to send an e-mail Mike@MichaelDunn.com or browse www.MichaelDunn.com for more details.

Mike

Posted: April 19th, 2009 under Hot Tips, Real Estate News.
Comments: none

Real Estate Appraisals and Buyer Re-negotiation!

In today’s real estate market, I have noticed appraisals coming in under the sales price and many review appraisals.  A review appraisal, is basically a second less detailed appraisal by the lender to make sure the first appraisal was accurate and to ensure the values have not dropped significantly.

I have noticed that some buyers, upon hearing of a review appraisal, try to use this to re-negotiate the price.  There is nothing wrong with this, it is a legitimate concern.  If the review appraisal is within 3% of the negotiated price, I do not see a problem.

What I have found interesting about appraisals, is that in 90% of the cases, the square footage of the houses is MORE than what the builder’s estimate was.  I completely understand the builder’s conservative estimates.  For the buyer, this is a huge benefit because in many cases the square footage added has been almost 5 to 10%.  So, on a 3,000 square feet house, this means an extra 300 square feet.   Most buyers do not notice the difference as they walk thru the house, but on paper when the price per square foot is reduced, it is most welcome.

Remember, every appraiser measures differently.  Some use the measuring tape, others use the laser beam to measure, but generally the county assessment districts measure the exterior of the house. 

Whatever the case may be, if the appraisal square footage comes within 5%, more or less, do not sweat it.

In other news, for you buyers out there looking on the Irvine Ranch, you are about to get some tremendous investment opprootunities in www.NorthwoodPointeIrvine.com, www.ThePelicanEstates.com because the school district in Northwood Pointe just received a very generous donation from some local merchants and this will ensure that Canyon View Elementary and Northwood High schools, will receive some unique educational opportunities that no other public school in Irvine will get.   In Newport Coast, the $3M and over price range is coming into line and becoming more affordable.  However, the ocean view land is very scarce, so this down ward turn will not last too long.

So, if your priority is to expose your child to the best educational programs while living in a family friendly environment, call me immediately at 949-533-2581.

Mike

Posted: April 19th, 2009 under Hot Tips, Real Estate News.
Comments: none

Passover, Easter and Real Estate!

Well, we are that time of year; the time for renewal and new opportunities.  In the Jewish faith, this is the time the Israelites escaped from slavery in Egypt on their journey to the Promised Land.  In Christianity, this is the time Jesus Christ died only to rise again.

What does this have to do with real estate?  Spring time is when most people begin their pursuit of buying real estate.  It is a time to escape the chains of indecision and rise above the fear of commitment.  Much like the Israelites made the commitment to break their chains (with a lot of help!) and many Christians decided to become “Born Again”, the true real estate investor see oppotunities and decides to make a commitment.

Today I was showing homes in Laguna Beach on a beautiful day.  This same kind of day took place almost 28 years ago, when as an 18 year old, I was running thru the streets of Laguna.  The wind felt the same, the sun shone upon my skin the same way, the waves crashed in the same mesmerizing manner, babies balanced with jittery steps in the same granules of sand.  As long as those “things” do not change, real estate will always hold it’s value.

You see, the same amount of people will always come to Laguna for the weather - and the weather is controlled by one and only one.  Financial markets are controlled by many, some competent, some greedy and some outright stupid, but the most important - is controlled by one and as long as this holds true, we all will be fine!

So relax, enjoy the celebration and know, that this Easter you shall break the chains that bind you from achieving your potential and you shall rise to new heights in all avenues of your choice.  All it takes is the same commitment the Israelites and Jesus Christ made so long ago.  Do it and one day you shall look back upon that day and a smile shall rise to your lips and you will know the true meaning of Passover and Easter!

All this is easy to achieve by going to www.MichaelDunn.com or www.NorthwoodPointeIrvine.com or www.ThePelicanEstates.com

Mike

Posted: April 11th, 2009 under Hot Tips, Real Estate News.
Comments: none

The Best Place to buy Real Estate!

This may not get the top Google or Yahoo search list today, but it is the best advice I can give you.

www.NorthwoodPointeIrvine.com and www.ThePelicanEstates.com are the best places to buy real estate and to live!  Why?

1. Location - less than 10 minutes from the beach, major shopping centers, excellent schools, business centers.

2. Weather - Most temperate climate in the world.  No extreme weather patterns.

3. People - These areas have some of the friendliest and most educated people on Earth.

4. Less land available to build.

www.MichaleDunn.com www.NorthwoodPointeIrvine.com www.ThePelicanEstates.com

Posted: April 11th, 2009 under Hot Tips, Real Estate News.
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IRS, Megan Fox and Real Estate!

The reason The IRS and Megan Fox are on this blog is quite simple.  This time of year, The Internal Revenue Service is the most “popular” and Megan Fox is ALWAYS popular.  Both the IRS and Megan Fox have one thing in common - they can both be the most beautiful experiences of our lives!

I know, we all know why the IRS can be so beautiful, but the real question is, why Megan Fox?

Well, let me first refresh your memory about the IRS and Real Estate.  When you purchase real estate, the IRS gives you a bounty of tax deductions anywhere from interest deduction on the mortgage, to tax incentives when you sell your home, tax defferal when trading a home. 

From the very beginning when you buy a house, you get a tax credit of $7,500.  If you buy thru FHA, you get special interest rates.  The government wants you to invest in the economy and is willing to make it easy for you. 

During this tax season, remember that the IRS is your friend and today especially, when prices are declining to more reasonable levels, take action on your real estate investments.

As an example, look at www.NorthwoodPointeIrvine.com and let’s choose 22 Foxcrest.  This home is approximately 3,000 square feet for $1,049,000.  At the peak of the market in 2006, it was worth around $1.3M.  Before rents softened, it would have rented around $4,200 per month.  Let’s assume you put 25% down ($260,000), this means a loan of approximately $800,000.   Let’s assume your loan is at the new conforming rate of $729,000.  You would be able to get an interest rate of 4.875% which translates to around $3,000 per month.  If we calculate taxes and HOA dues, the monthly payment settles in around $4,250 per month, which is just above what the monthly rent would be.

At the peak a few years ago, your payment would have been $1,500 more per month!  Now here is the really good news, out of that $4,250 per month paymet, if it is an interest only loan, $3,800 is TAX DEDUCTABLE!!!

Let’s say you are paying $4,250 per month in rent, only 10% of that will be tax deductable if you have a home office.  The most amzing thing is, while you have these tax deductions, Uncle Sam let’s your house appreciate and when you sell, does not charge you any capital gains up to $250,000 if you are siungle and $500,000 if you are married.

This brings us to the question why Megan Fox?  I only have this answer:

If a picture is worth a thousand words, this picture should cover it!

Mike

Posted: April 4th, 2009 under Hot Tips, Real Estate News.
Comments: none

Hi-5 and Real Estate!

With Hi-5 being another great way to stay in touch with friends and network, I think we should all give eachother a Hi 5 for keeping our economy afloat during these extraordinairy times.  These times are so exciting because the opportunities we have today are incredible.

Look around our area.  Orange County, Calidornia is an amazing place to work, raise a family and gain fame and fortune.  No where is this more prevalent then on the Irvine Ranch.  The Ranch is located between Laguna Beach to the south, Costa Mesa and Tustin to the North, Lake Forest to the East and the statuesque hills of Newport Coast to the West.

The balance of beaches, hiking trails, city bike trails, and the age old pastime of shopping, make this part of the irvine Ranch, a paradise in nevery sense of the word.

Today in fact, I stepped out of my office, changed into workout clothes and hit the trail that runs to the backbay and Pacific Ocean.  WOW!  Birds were singing, ducks were quacking, Herons were stalking and the world was turning.  Yes sir, we have it very lucky in these parts.  This is why the real estate downturn has not been as secvere as other places.  We have the good Feng Shui - the life force that attracts people from all over the world.

If you are looking to move to an area where you will be able to enjoy a temperate climate, all the modern amenities and raise a family in a safe and nurturing environemnt, The IOrvine Ranch is the place to be.  Within the Ranch, there are twom distinct areas where you will always see your real estate protected:   www.NorthwoodPointeIrvine.com and www.ThePelicanEstates,com and of course, www.MichaelDunn.com will offer you a means to search where ever you like to find the best deal.

So if you own real estate on The Irvine Ranch, give yourself a Hi-5 and be greatful you have chosesn to live where others can only dream!

Mike

Posted: April 2nd, 2009 under Hot Tips, Real Estate News.
Comments: none